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Yesterday the German federal labour office released the unemployment rate data that stayed unchanged at 6.4 % in July, the lowest level since 1991, despite an unexpected rise of 9K jobless. Despite the small increase in non-seasonally adjusted terms, German labour market report displays a strong German economy.

Official data showed yesterday that German inflation continues to slow and hit 0.2% a five-month low in July, raising pressures on the European Central Bank (ECB) to continue its expansionary monetary policy.The annual inflation in the euro zone is scheduled to be released today. Investors are expecting that the reading would also remain weak and the unemployment rate is estimated to stay unchanged at 11.1%.

Since the beginning of the year the European locomotive has rose more than 15.0% and is in a warning phase. The Ger30 moved back and forward and close near the open of the day, creating a doji candle pattern, signs of indecision in the market while testing a daily resistance. The stochastic is showing a bearish momentum and is below the 50 mid line.

Ger30 is a CFD written over DAX30 futures.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

Investors fear that the latest commotion in China's stock market will affect, the already, weak demand in the world's second biggest economy. Oil prices have also been down due to a global crude oversupply coming from strong production in the United States and the Organization of the Petroleum Exporting Countries (OPEP) led by Saudi Arabia.

Iran was the second-biggest producer in the Organization of Petroleum Exporting Countries (OPEP) before the European Union banned its purchases of its crude in July 2012. Now Iran is getting back to the OPEP after an agreement had been made in July with the six world powers allowing Iran to ramp up energy exports with the gradual lifting of sanctions.

In the meantime, markets remain cautious on the EIA’s report on crude inventories due today, following last week’s number of 2.468 million barrels. Today we have the release of US Energy Information Administration (EIA) latest survey. The report is expected to show a fall in crude oil stocks with estimates at 700 million barrels.

On yesterday session, crude oil initially fell but found enough buying pressure just below previous day low at 46.89 to turn around and closed in the green near the high of the day on a wide range day, creating an outside day. The commodity is trending lower toward the low of the year and is still in a bearish phase since the end of June. The stochastic is showing an extreme oversold market although is displaying a slight bullish momentum.

LCrude is a CFD written over Light Crude futures.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

Euro zone preliminary Markit manufacturing (PMI) fell to 52.2 in July from both prior and expected readings of 52.5, but was still expanding. The services sector also eased its growth to 53.8 from 54.4. The euro rose on Thursday after Greece managed to pass the second set of reforms needed to start negotiations with its lenders.

The International Monetary Fund (IMF) said that Japan must avoid overly relying on a weak yen to reflate the economy by deploying a new round of structural reforms such as steps to boost labor market participation. Although the Bank of Japan (BoJ) stands ready to expand stimulus to meet its target and further easing without bolder structural reforms and a credible fiscal strategy could lead to over-reliance on yen depreciation to reflate the economy.

Since the beginning of this year EURJPY has fallen more than 6.00% and is in a potential phase change from distribution to a warning phase. The pair initially fell during Friday’s session but found enough buying pressure to turn around but still closed in the red near open of the day. However, price is at a critical point touching for the third time the downward trend line that is acting as a resistance. Stochastic is showing a bullish momentum and is above the 50 mid line.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

The market is waiting for more political cues from Greece as its parliament is due to secure another vote on a second set of reforms to secure Athens' bailout package and if approve Athens can go ahead with talks on an €86 billion bailout from its international creditors.

The dollar strengthened against its main rivals on yesterday session after the National Association of Realtors reported that US existing-home sales in June grew at the fastest pace since February 2007, just before the financial crisis shook the market and strengthened the case for a Fed rate hike.

The housing price index for the US showed an increase to 0.4% in May from 0.3% in the previous month and existing home sales increased 3.2% on a monthly basis in June, beating markets' estimates of 1.2% growth. The growth was 5.1% in May.

Since the start of July the EURUSD fell more than 2.0 % and is still in a bearish phase since late June, but held just below the 61.8% Fibonacci retracement. Yesterday the currency initially rallied but found enough resistance at 1.0955 to give all its gains back and closed in the red in the middle of the daily range. The Stochastic is showing an oversold market although displaying a strong bullish momentum.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

The US economy has had a rough first half in 2015, but the pace of growth is picking up and in June, US employers added 223K workers and the unemployment rate dipped to 5.3%. With the US economy back on track, investors are predicting a rate hike in September has more than a 50% probability. The Federal Reserve (Fed) will issue a statement at the conclusion on its next meeting on Wednesday July 29.

On the economy front the Swiss Federal Statistics office showed on 16 July that real turnover in the retail sector adjusted for sales days and holidays fell by 1.8% in May, disappointing expectations for a gain of 1.9% and following an increase of 1.6% in April. Also the Swiss unadjusted jobless rate declined to 3.1% in June of 2015 from 3.2% in the previous month beating market forecasts.

The USDCHF rose on yesterday session hitting a daily resistance and closed near the high of the day on a narrow range day. The pair is in an accumulation phase since mid-July. The Stochastic is showing an overbought market although the currency is still displaying bullish momentum.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

EURUSD headed into the ECB press conference weaker despite yesterday’s Greek parliamentary vote approved as expected the deal with creditors. The currency weakness has been partially attributed to hawkish comments from Fed over the past few days. Although the pair did recover some of its losses after Draghi stated in is press conference that the ECB will be provided support to Greek banks through a EUR 900mln Emergency Liquidity Assistance (ELA) extension.

On the other side of the Atlantic and according to the US Labor Department the initial claims for state unemployment benefits dropped 15K to a seasonally adjusted 281K for the week ended July 11, pointing to a solid labor market. The decline reversed the prior week's rise and ended three straight weeks of increases.

Since the start of July the EURUSD fell more than 2.0 % and is still in a bearish phase since late June, but is holding the at a 61.8% Fibonacci retracement. Yesterday the currency fell reaching a 6 week low after testing the critical Fibonacci retracement of 61.8%, but recovered somewhat but closed near the low of the day. The Stochastic is showing an oversold market despite continuing to display a strong bearish momentum.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

The dollar rose against a basket of currencies on Wednesday after Federal Reserve policy makers upgraded their assessment on the labor market, supporting some investors’ view of a rate increase in September. Policy makers modified the statement to say they only need to see “some” further improvement in the labor market before increasing the interest rate, now all eyes turn to the nonfarm payrolls reports for July and August as they likely determine whether a rate hike happens in September or not.

Brazil's central bank was poised to maintain its pace of interest rate hikes after a sharp cut in fiscal savings targets and motivated doubts about the government's commitment to help contain price increases. We may expect a 50 basis points hike to 14.25% and a possible downgrade threat of its investment-grade rating from Standard & Poor's rating agency.

Since the beginning of the month the USDBRL rose more than 7.0% and is in a bullish phase since late May. On Tuesday the currency made a shooting star pattern after making an all-time high, suggesting a possible pullback before another upward move. In addition on yesterday session the currency fell and closed in the red near the low of the day. The stochastic is showing a bearish momentum but is still above the 50 mid line.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

Gold is keeping momentum firmly with the bears with expectations for a near-term US interest rate hike. The market has turned their eyes to the US monetary policy although yesterday selling may have come on the back of a need to cover losses elsewhere as Chinese stock market indexes experienced their biggest one-day loss since 2007.

The Federal Reserve will hold a two-day meeting this week where policymakers are likely to show more signals pointing to a rate rise in a near-term as the US economy strengthens. With the US economy continuing to improve, the dollar is likely to continue rising and the price of gold typically falls as the dollar rises.

Since the start of July month gold plunged more than 6.5% and is still in a bearish phase since mid-May. Gold tried to rally but found enough resistance to turn around and closed in the red near the open of the day, creating a doji candle pattern. The precious metal is in a consolidating after the sharp fall on the 20 of July. Stochastic is showing lack of momentum although is below the 50 mid line.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

The Bank of England (BoE) hawkish comments pushed up the Pound on Wednesday, after saying that they expect inflation to converge towards the 2% target at the end of 2015 and the release of the recent BoE minutes revealed a 9-0 vote and the minutes also warned that GBP strength could suppress inflation.

But yesterday the UK retail sales data showed an unexpected down turn printing 4.0% in June with analysts expecting an increase to 4.9%. On the other side of the Atlantic the US unemployment claims released yesterday, showed a drop in jobless claims to 255K last week, the lowest in four decades. Analysts had been expecting 279K claims.

Since the beginning of July the GBPUSD has fallen more than 1.20% and is in a potential phase change from bullish to warning phase. During yesterday session the currency tried to rally but found enough selling pressure to reverse and closed in the red near the low of the day, creating a bearish engulfing candle pattern. The stochastic is showing bearish momentum although is above the 50 mid line.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

This month, the cost of West Texas Intermediate oil, a US benchmark, has been hovering at just over $50 a barrel, down from about $110 over the past year. Meanwhile, the number operating oil rigs in the country has fallen to just 645 being the lowest rig count in almost five years, down from more than 1,500 a year ago.

The Organization of the Petroleum Exporting Countries (OPEC) said last month that it would continue to pump 30 million barrels a day, despite low prices, sending a strong signal to US competitors that it had no plans to lift up the pressure on the US.

On the other hand China's June crude oil imports from Iran rose 26.5% from a year ago to 671,800 barrels per day (bpd) and on a daily basis, June imports rose 29.6% from 518,400 bpd in May.

In the meantime, markets remain cautious on the EIA’s report on crude inventories due today, following last week’s number of -4.346 million barrels. Today we have the release of US Energy Information Administration (EIA) latest survey. The report is expected to show a rise in crude oil stocks with estimates at -1.750 million barrels.

On yesterday session, crude oil initially rose but found enough selling pressure at 51.08 a Fibonacci retracement to turn around but still managed to close in the green near the open of the day. The commodity is trading in a range bond market and is still in a bearish phase since the end of June. The stochastic is showing oversold market and lack of momentum.

LCrude is a CFD written over Light Crude futures.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

Governor Stevens and the Reserve Bank of Australia (RBA) clearly maintain some dovish Bias, as markets have generally took the May interest rate cut to be the last of the easing cycle causing the Australian dollar to strengthen in response to the announcement. Aussie employment appears steady, the focus now will shift to whether the RBA removes the last of their easing bias and moves towards more neutral territory, given their ongoing concerns regarding elevated household debt.

The depreciation of the yen may be pushing inflation toward the central bank’s 2% target by increasing profits at Japan’s biggest exporters but is disabling the smaller companies dependent on imported energy and raw materials. Bankruptcies related to the weak currency rose for a 17th month in May. While Bank of Japan’s (BOJ) tolerance for a weak yen may be wearing thin as the currency is near the edge of a “tolerable range.”

Since the beginning of this year AUDJPY has fell more than 6.5% and is in a bearish phase since mid of July after the death cross. The currency fell during Friday’s session and closed near the low of the day on a narrow range day, creating an inside day. Stochastic is showing a bearish momentum and is below the 50 mid line.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

US Federal Reserve sees good prospects for further improvement in the labour market that has generated more than 2.9 million jobs in the past 12 months. Unemployment fell last month to 5.3%, its lowest in more than seven years, keeping the central bank on track for an interest-rate increase this year.

The sharp contraction of the Brazilian economy has dragged down tax revenues further complicating government efforts to meet a key fiscal goal this year, at a time when President Dilma Rousseff is fighting to strengthen the country's finances and regain the confidence of market players.

Yesterday the USDBRL moved back and forward between the 10-day moving average and a daily support but closed in the green near the open of the day, creating a doji pattern. The currency is on a bullish phase and closed for the 3rd consecutive day below the 10 day moving average. The stochastic is showing a bearish momentum and is below the 50 mid line.

Leveraged products carry a high degree of risk to your capital and any forecasts given are not a reliable indicator of future performance.

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